China and the Philippines should manage their differences properly, the Chinese foreign ministry said on Thursday, after the first in-person meeting between senior diplomats from the countries since before the COVID-19 pandemic.
Bilateral tensions have risen recently over naval disputes in contested areas of the South China Sea and the increasing U.S. military presence in the Philippines.
"Both sides reaffirmed the importance of properly managing differences through friendly consultations, as well as maintaining the general direction of Sino-Philippine friendship," Beijing's ministry said in a statement.
It came after Chinese Vice Foreign Minister began a three-day visit to Manila by meeting with Philippines counterpart Theresa Lazaro.
The talks also touched on aspects where both sides could work more closely, it said, yielding an agreement to deepen cooperation in agriculture, infrastructure, energy and culture.
Lazaro said in a statement that almost four years had passed since the last high-level diplomatic consultations between Beijing and Manila and that they should be held more often.
The Philippines earlier this week announced four new military bases under a defence agreement with the United States that would beef up Washington's military presence in the Southeast Asian country.
The bases in question would be located in various areas of the Philippines, including in a province facing the South China Sea. Some leaders of local governments at the sites opposed Manila's decision, worried they would be dragged into a conflict if one arose between the U.S. and China over Taiwan.
China's foreign ministry on Wednesday reiterated a warning to regional countries "vigilant" and avoid being used by the United States. (Reuters)
A push by the United States to upgrade ties with Vietnam this year is facing resistance in Hanoi, over what experts say are concerns that China could see the move as hostile at a time of tension between superpowers Beijing and Washington.
The United States is hoping for an upgrade in the relations this year, ideally to coincide with the 10th anniversary in July of its comprehensive partnership with Vietnam.
The United States is a major investor in Vietnam and the largest ever U.S. business mission visited the country this week.
Though it is Vietnam's biggest export market, it is currently ranked as a third-tier diplomatic partner for Hanoi. Its top tier consists of China, Russia, India and South Korea are, while its second tier, which Washington wishes to join, includes European countries and Japan.
A formal ties upgrade this year "is not considered realistic anymore," said Florian Feyerabend, the representative in Vietnam for Germany's Konrad Adenauer Foundation.
Though the move would be largely symbolic, Vietnam's leaders are hesitating, fearing possible retaliation from China, according to experts, who cited discussions with Vietnamese officials.
"Given the intensifying China-U.S. competition and proximity between China and Vietnam, Hanoi may feel reluctant to formally upgrade its comprehensive partnership with Washington," said Bich Tran, adjunct fellow at the Washington's Center for Strategic and International Studies.
China is Vietnam's biggest trading partner and a vital source of imports for its manufacturing sector.
The two neighbours have a long history of conflict and mistrust and remain at odds over islands, features and resources in the South China Sea.
Asked whether Vietnam was ready to upgrade ties with the United States this year, a spokesperson for its foreign ministry on Thursday said that would happen "when the time is right", stressing the strong relations they already enjoy.
High-level meetings could offer a chance for a last-minute breakthrough on the U.S.-Vietnam ties, the experts said, with diplomats hoping to arrange a meeting of their foreign ministers, while their leaders could meet on the sidelines of the G7 summit in Japan in May.
The U.S. embassy in Vietnam did not immediately respond to a request for comment.
Le Hong Hiep, a Senior Fellow at Singapore's ISEAS–Yusof Ishak Institute, said there was no doubt Vietnam wants to upgrade ties with Washington, but it was unlikely to agree to that this year.
But "the upgrade may no longer be a priority for the U.S. in the future," he said. (Reuters)
The U.S. nominee to lead the World Bank, former Mastercard (MA.N) CEO Ajay Banga, returns to his native India on Thursday, capping a three-week global tour to drum up support and discuss development and climate needs with donor and borrowing countries.
The Treasury said Banga will visit New Delhi on March 23 and 24, where his likeness has already been posted on billboards. He will meet with Prime Minister Narendra Modi as well as the minister of finance, Nirmala Sitharaman, and the minister of external affairs, Subrahmanyam Jaishankar.
"These discussions will focus on India’s development priorities, the World Bank, and global economic development challenges," the Treasury said in a statement.
India’s government endorsed the candidacy of Banga, a longtime finance and development executive who is now a U.S. citizen, soon after his nomination was announced in late February.
He has won the support of enough other governments to virtually assure his confirmation as the next World Bank president, including Britain, France, Germany, Italy, Japan, Bangladesh, Colombia, Egypt, Ivory Coast, Kenya, Saudi Arabia and South Korea.
The World Bank will accept nominations from other countries until March 29, but no competitors have been announced. The World Bank has been led by an American since its founding at the end of World War Two, while the International Monetary Fund has been led by a European.
U.S. President Joe Biden last month nominated Banga, 63, to replace David Malpass, who announced his resignation after months of controversy over his initial failure to say he backed the scientific consensus on climate change.
In India, Banga will also visit a vocational skills development institute funded in part by the World Bank, the Treasury said.
Over the past month, Banga has met with government officials, civil society groups, business leaders and other stakeholders on a "global listening tour" that started in Africa before progressing to Europe, Latin America and Asia. (Reuters)
South Korean and U.S. troops launched their largest amphibious landing drills in years involving a U.S. amphibious assault ship, officials said on Thursday, a day after North Korea tested four long-range cruise missiles.
The USS Makin Island docked at a naval base in the southeastern port city of Busan on Wednesday to join the Ssangyong exercise, which kicked off on Monday near Pohang on South Korea's east coast and will last until April 3.
About 12,000 sailors and marines from the two countries will take part, as will 30 warships, 70 aircraft and 50 amphibious assault vehicles, the South Korean military said.
Hours before the ship docked, North Korea fired four cruise missiles off its east coast, South Korea said, in apparent protest of ongoing drills by the U.S. and South Korea.
Captain Tony Chavez, commanding officer of the Makin Island, said the launches were "escalatory," and that the combined exercises with South Korea are aimed at building "muscle memory" to respond to a crisis if needed.
"It does not matter where that threat is coming from. We are ensuring that we are able to amass forces to maintain maritime and air superiority and defend Northeast Asia or all of the Indo-Pacific region," Chavez told reporters aboard the ship.
The Makin Island carries 10 F-35 stealth fighters in addition to dozens of armoured vehicles. The ship's welldeck, which can be flooded to provide direct access to the sea, allows it to launch and recover landing craft and other amphibious vehicles, the U.S. military said.
"Our biggest thing is that we have all the Marines," said the Makin Island's public affairs officer, Lieutenant Jarred Reid-Dixon. "We can take people on here and put them on the ground to seize an area if we had to."
The allies were scheduled to conclude 11 days of their regular springtime exercises, called Freedom Shield 23, on Thursday, though they have other field training exercises continuing under the name Warrior Shield.
Pyongyang has long bristled at exercises conducted by South Korean and U.S. forces, saying they are preparation for an invasion of the North. South Korea and the U.S. say the exercises are purely defensive.
Last week, North Korea fired an intercontinental ballistic missile into the sea between the Korean peninsula and Japan in a "warning to the enemies," and conducted what it called a nuclear counterattack simulation against the United States and South Korea over the weekend. (Reuters)
The Honduran foreign minister is travelling to China to "promote" the establishment of diplomatic ties, an official said, signalling the end is most likely near for the country's decades-long relations with Taiwan.
At stake is China's growing footprint in Central America, once a steadfast base for Taiwan and where the United States is worried about Beijing's expanding influence in its backyard.
Honduran President Xiomara Castro tweeted last week her government would seek to open relations with China.
"Foreign Minister Eduardo Enrique Reina on instructions from President Xiomara Castro travelled to China on Wednesday to promote efforts for the establishment of diplomatic relations," presidential press secretary Ivis Alvarado said.
China's Foreign Ministry spokesman Wang Wenbin said Beijing welcomed the Honduran government's positive attitude towards building relations, and was willing to develop them "on the basis of equality and mutual respect".
Taiwan's Foreign Ministry said it had summoned in the Honduran ambassador to express its "strong dissatisfaction" at the trip which "seriously harmed the feelings of our government and people".
A source with direct knowledge of the situation told Reuters Reina and his delegation left for Beijing from Panama, accompanied by Chinese officials. The source declined to be named because of the sensitivity of the situation.
A senior Taipei-based diplomatic source told Reuters that Reina going to China meant an announcement on forging relations was probably near.
"The die is cast," the diplomat said, speaking on condition of anonymity as they were not authorised to speak to the media.
The move will leave Taiwan with diplomatic relations with only 13 countries.
Honduras denied on Wednesday it had demanded $2.5 billion in aid from Taiwan before its announcement to seek to open relations with China, instead saying the country had repeatedly asked Taiwan to buy Honduran public debt.
Chinese Foreign Ministry's Wang called remarks about Honduras making the demand prior to its China announcement "absolutely preposterous and groundless".
Speaking on Thursday to reporters at parliament, Taiwan Foreign Minister Joseph Wu said the situation with Honduras was "not very good".
"The other side demanded a high price," he added, though he did not directly confirm the $2.5 billion number, saying only that "the facts will out".
China, which views Taiwan as its own territory with no right to state-to-state ties, has involved itself in the issue, Wu said, without giving details.
"The marks of Chinese involvement are very obvious," he said.
But Taiwan will not engage in dollar diplomacy with China, Wu added.
The Honduras crisis erupted ahead of next week's visit by Taiwan President Tsai Ing-wen to Guatemala and Belize, which remain allies.
Tsai is stopping in New York on the way there and Los Angeles on the way back, where she is expected to meet U.S. House Speaker Kevin McCarthy. Wu, asked to confirm that meeting, said it was still being arranged.
"Beijing originally planned to act in the second half of the year, but because of President Tsai's visit, it brought its plans forward," said the source with direct knowledge of the situation, referring to getting Honduras to switch sides.
Reina said last week Honduras' decision was partly because the Central American country was "up to its neck" in financial challenges and debt - including $600 million it owes Taiwan.
He said on Wednesday his country had repeatedly requested Taiwan to buy Honduran public debt and that the $2.5 billion figure was "not a donation," but rather "a negotiated refinancing mechanism".
Wu, answering a lawmaker's question, said Honduras' demands were beyond what Taiwan could do and that it was not just Taiwan who was owed money.
"We have said to them previously the debt they owe us can be readjusted," Wu said. (Reuters)
Chinese defence officials met their Australian counterparts in Canberra on Wednesday, China's Ministry of National Defense said, in their first formal meeting since 2019.
The talks were helpful in developing a stable relationship between their militaries, the Chinese defence ministry said, and further enhanced mutual understanding.
Australia's defence department confirmed the meeting, adding that dialogue was conducted "in a professional atmosphere with both sides exchanging views on regional security issues".
The talks come after Chinese foreign minister Qin Gang said that the two countries have restarted institutional dialogue and consultation in multiple areas, in a meeting with his Australian counterpart on the sidelines of the G20 meeting earlier this month.
Ties between the two countries deteriorated in recent years, with China imposing sanctions on Australian exports after Canberra called for an international inquiry into the origins of the novel coronavirus.
They are now making progress towards the resumption of Australian timber exports to China in the latest sign of the normalisation of trade.
But as they work to improve ties, the alliance of the United States, Australia and Britain has made moves to counter China's ambitions in the Indo-Pacific.
Last week, the AUKUS alliance unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s.
China's foreign ministry criticised the deal, saying that the AUKUS has disregarded concerns of the international community and "gone further down a dangerous road". (reuters)
Russia said on Wednesday that a division of its Bastion coastal defence missile systems had been deployed to Paramushir, one of the Kuril islands in the north Pacific, some of which Japan claims as its territory.
The move is part of a wider strengthening of Russian defences in its vast far eastern regions, Defence Minister Sergei Shoigu said, partly in response to what he called U.S. efforts to "contain" Russia and China.
Shoigu was speaking to Russia's top army brass a day after President Vladimir Putin and Chinese leader Xi Jinping cemented their "no limits" partnership at talks in the Kremlin with agreements on deeper energy and military cooperation.
"To contain Russia and China, the United States is significantly increasing its military presence in the Asia-Pacific region, strengthening its political and military links with its allies, continuing to create a new American security architecture in this region," Shoigu said in a video of his address published by Russia's defence ministry.
Shoigu said the Bastion system would bolster Russian security around the Kuril island chain.
Japan, a close U.S. ally, claims the four southern Kuril islands, which were seized by Soviet forces at the end of World War Two. Japan does not claim Paramushir, one of the northern Kuril islands.
The issue has prevented Moscow and Tokyo ever signing a peace treaty formally ending hostilities.
Russian armed forces in the east of the country have received around 400 items of modern military equipment over the past year, including SU-57 jets and anti-aircraft missile systems, Shoigu said.
"The military capabilities of the eastern military district have significantly increased," he said.
Shoigu also said the modernisation of Moscow's air defence system would be completed this year.
Russian officials have blamed Kyiv for a string of drone attacks deep inside Russian territory since the beginning of the military campaign in Ukraine.
On the Ukraine conflict, Shoigu said Russian aerospace forces had so far destroyed more than 20,000 Ukrainian military facilities since the start of what Moscow calls its "special military operation". (reuters)
Sri Lanka will kick off the next round of talks with creditors in the third week of April, President Ranil Wickremesinghe said on Wednesday, adding that the debt-stricken nation has started to receive funds from the International Monetary Fund.
The IMF has released the first tranche of about $330 million, part of a nearly $3 billion bailout approved by it on Monday, Wickremesinghe told parliament.
"This will create opportunities for low-interest credit, restore foreign investors' confidence and lay the foundation for a strong new economy," he said.
The IMF bailout is expected to catalyse additional support to the tune of $3.75 billion from the likes of the World Bank, the Asian Development Bank and other lenders. It also clears the way for Sri Lanka to restructure a substantial part of its $84 billion worth total public debt.
Sri Lankan officials will start the next round of talks with bondholders and bilateral creditors in the third week of April, Wickremesinghe said, adding that a fully transparent process will be followed.
Sri Lanka also aims to reduce inflation to a single digit by mid-2023 and later to 4%-6%, Wickremesinghe said. The country's National Consumer Price Index (LKNCPI=ECI) rose an annual 53.6% in February.
This was the 17th IMF bailout for Sri Lanka and the third since the country's decades-long civil war ended in 2009.
Economic mismanagement coupled with the impact of the COVID-19 pandemic left Sri Lanka severely short of dollars for essential imports at the beginning of last year, tipping the island nation into its worst financial crisis in seven decades.
Unlike previous bailouts, which were mainly used to bolster foreign exchange reserves, the funds from the current programme can also be used for government spending, senior IMF official Masahiro Nozaki said on Tuesday. (reuters)
Taiwan's defence ministry has contingency plans for any moves by China during Taiwan President Tsai Ing-wen's overseas visit, Deputy Defence Minister Po Horng-huei said on Wednesday ahead of Tsai going to the United States and Central America next week.
China, which claims democratically governed Taiwan as its own territory, carried out large-scale war games around the island last August after a visit to Taipei by then-U.S. House Speaker Nancy Pelosi.
Tsai is visiting diplomatic allies Guatemala and Belize on a trip starting next week, but she will be stopping off in New York and Los Angeles.
While in California she is expected to meet current House Speaker Kevin McCarthy, the most sensitive leg of the trip, though Taiwan's presidential office on Tuesday declined to confirm that would take place.
Asked by reporters on the sidelines of a parliament session whether China was likely to stage more drills when Tsai is abroad, Po said the armed forces were prepared.
"When it comes to what the Chinese communists have done in the past, the defence ministry can have a grasp on it, and will consider the worse scenario," he said.
"During the president's overseas visit, the defence ministry has contingency plans for all moves" by China, Po added, declining to give details.
The United States has said there is no reason for China to react to Tsai's trip, saying such transits are routine and have happened many times before.
China, which has condemned Tsai's planned U.S. stop over, has continued its military activities around Taiwan since August, though on a much reduced scale.
Taiwan rejects China's sovereignty claims, saying on Taiwan's people can decide their future. (reuters)
President Ferdinand Marcos Jr said on Wednesday that four new military bases under a defense agreement with the U.S. would be located in various parts of the Philippines, including in a province facing the South China Sea.
Last month, Marcos granted the U.S. access to four sites, on top of five existing locations under the 2014 Enhanced Defense Cooperation Agreement (EDCA), which comes amid China's growing assertiveness in the South China Sea and towards Taiwan.
"There are four extra sites scattered around the Philippines - there are some in the north, there are some around Palawan, there are some further south," Marcos told reporters at the sidelines of the Philippine army's founding anniversary.
The EDCA allows U.S. access to Philippine bases for joint training, pre-positioning of equipment and building of facilities such as runways, fuel storage and military housing, but it is not a permanent presence.
The Philippines and the U.S. would announce the locations of the bases soon, Marcos said, adding the sites would boost the country's ability to defend the "eastern side" of its largest island, Luzon. Luzon is the closest main Philippine island to self-ruled Taiwan that China claims as its own.
China's foreign ministry on Wednesday reiterated its stance that the U.S. side was increasing tensions by strengthening its military deployments in the region, adding countries should be "vigilant" and avoid being used by the U.S..
"We generally believe that defence cooperation between countries should be conducive to regional peace and stability, and should not be aimed at third parties or harm the interests of third parties," spokesperson Wang Wenbin told reporters at a regular news briefing.
A former Philippine military chief has publicly said the U.S. had asked for access to bases in Isabela, Zambales and Cagayan, all on the island of Luzon, facing north towards Taiwan, and on Palawan in the southwest, near the disputed Spratly Islands in the South China Sea.
Some leaders of local governments at the potential EDCA sites have opposed Marcos' decision, worried they would be dragged into a conflict if one arose between the U.S. and China over Taiwan.
But Marcos said his government has discussed with them the importance of the expanded U.S. access and "why it will actually be good for their provinces".
Washington has committed $80 million worth of infrastructure investments at the five existing sites - the Antonio Bautista Air Base in Palawan, Basa Air Base in Pampanga, Fort Magsaysay in Nueva Ecija, Benito Ebuen Air Base in Cebu and Lumbia Air Base in Mindanao.
Speaking before Philippine troops, Marcos told them to be vigilant as the external threat to security was becoming more "complex" and "unpredictable".
"Be vigilant against elements that will undermine our hard earned peace, our hard earned stability, continue to improve relations with your counterparts overseas," Marcos said.
Without giving specifics, Marcos said he was aware of an "emerging threat" to his country's territory, which he said would require "adjustments in our strategy".
"The external security environment is becoming more complex. It is becoming more unpredictable," Marcos said. (Reuters)